Trump meets with Powell for the first time since 2019, Trump calls for interest rate cuts, Powell insists on policy independence.

Trump stated that the failure of The Federal Reserve (FED) to cut interest rates is a mistake.

Written by: He Hao

Source: Wall Street News

On Thursday, the Federal Reserve (FED) stated in a statement that Chairman Powell will meet with President Trump at the White House on Thursday, May 29, at the invitation of the President. Both sides discussed the state of the U.S. economy, including issues such as economic growth, employment, and inflation.

This is the first meeting between the two since Trump began his second term as President of the United States. It is also their first meeting since November 2019.

Earlier this month, Powell stated that he would not seek a meeting with Trump unless the president actively requested it. "I have never asked to meet with any president, nor will I ever. I won't do that. I have never had a reason to request a meeting. It is always the other party that proposes it."

The Fed said that Powell did not discuss expectations for monetary policy during the meeting, only emphasizing that the policy path will depend entirely on future economic data and the impact of that data on the economic outlook. Powell stressed that he and his colleagues at the Federal Open Market Committee (FOMC) will set monetary policies designed to support maximum employment and price stability, as required by law, and that all decisions will be based on careful, objective, and non-politicized analysis.

The meeting between Trump and Powell comes shortly after Trump announced that a series of tariffs on American trading partners were mostly ruled invalid by the courts.

In 2025, the Federal Reserve (FED) has maintained interest rates unchanged, believing that in the context of Trump's continuous expansion and adjustment of tariff policies leading to increased economic uncertainty, adopting a patient policy stance is appropriate. Federal Reserve (FED) policymakers have stated that the announced tariffs are expected to put pressure on economic growth while also raising inflation levels.

The Federal Reserve's "wait-and-see" stance has sparked discontent from Trump. Trump has repeatedly criticized the Federal Reserve under Powell's leadership, openly calling for interest rate cuts. Trump previously stated that Powell often adjusts policies too slowly and has referred to Powell multiple times as a "big loser."

In a social media post in April this year, Trump reignited speculation about whether he would seek to remove Powell, a speculation that first emerged during his first presidential term. However, Trump later put this idea aside. Powell's term as chairman of The Federal Reserve (FED) will expire in May 2026.

In addition, a Supreme Court ruling this month protected The Federal Reserve (FED) from the aforementioned dismissal. This ruling is part of a broader ruling that allows the President of the United States to dismiss senior officials of independent agencies.

Powell has repeatedly emphasized that Federal Reserve officials take a non-political stance when formulating policy and make decisions based on their judgment of what is in the best interest of the economy. According to the Federal Reserve, Powell reiterated this position to Trump during this meeting.

Trump Pressures Powell Again to Cut Interest Rates

Shortly after the above statement from The Federal Reserve (FED) was released, White House Press Secretary Karoline Leavitt confirmed the accuracy of the FED's statement during a briefing.

The White House indicated that Trump urged Powell to lower interest rates during their first face-to-face meeting since he took office as president. Leavitt stated at a briefing on Thursday that Trump expressed to Powell that he believes the decision by the Federal Reserve chairman not to cut rates was a mistake.

Levitt stated that this decision puts us at an economic disadvantage compared to other countries, and the president has been very outspoken about this, both in public and—now I can reveal—in private as well. The two did not discuss whether Trump would seek to remove Powell.

Afterward, the Director of the National Economic Council of the White House, Hassett, stated that he participated in the meeting between President Trump and Federal Reserve Chairman Powell, confirming Powell's statement from the talks.

Due to ongoing uncertainties surrounding tariffs, the market generally expects the Federal Reserve (FED) to keep interest rates unchanged until the situation becomes clearer. Futures market pricing indicates that the Federal Reserve (FED) is not expected to resume rate cuts until September at the earliest, and there may be another rate cut before the end of the year.